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BCN-38
INDIA-ECONOMY-TRADE-WAR-MANUFACTURING
Trade war will help India emerge as bigger trading, manufacturing base:
Jaitley
New Delhi, Sep 28, 2018 (BSS/PTI) – Finance Minister Arun Jaitley Friday
said the ongoing global trade war may have created initial instability , but
will gradually open up opportunities for India as a bigger trading and
manufacturing base.
Calling on businesses to adopt ethical practices, Jaitley said that
entities should pay their due share of taxes as the Insolvency and Bankruptcy
Code (IBC) will shut doors on fly-by-night’ operators.
Speaking at the annual session of PHD Chamber of Commerce, Jaitley said
some global trends do adversely affect India, but going ahead they will open
up avenues for the country to grow faster.
The trade war initially created instability, but eventually may open up
greater markets. They will open up India as a bigger trading and
manufacturing base and, therefore, we must closely watch the situation as to
when the challenge turns into an opportunity, Jaitley said in his video
conference address.
Experts say that the ongoing trade war between the US and China could make
Indian products, like machinery, electrical equipment, vehicles and transport
parts, chemicals, plastics and rubber products, competitive in the US
markets.
Jaitley said the rising oil prices, too, pose a challenge for the economy,
since India is a net importer of crude oil. India is 81 per cent dependent on
imports to meet its oil needs.
India is the third-largest importer of crude oil, and rising international
crude oil prices are inflating domestic transport fuel rates in a strong
demand environment. Brent, the benchmark for half of world’s oil, climbed to
USD 80 per barrel from USD 71 in the last five weeks.
Not withstanding these challenges, I’m quite certain that in the days and
years to come, there are great opportunities for India in order to grow, the
minister said.
Asking businesses to be ethical in their practices, Jaitley said post the
IBC, doors will be shut on fly-by-night operators and those with ethical
practices will find a much greater opportunity to continue their businesses.
While free trade is allowed the emphasis also has to be on ethics of the
business. Those who should be paying taxes must be paying taxes and the
taxpayers should not be burdened with those who evade taxes. Therefore, one
of the most ethical practices has to be to bring in those who evade taxes
within the tax net, the Minister said.
The IBC, Jaitley said, has imposed a new ethics on Indian businesses when
you take money from lenders you have to service the debt, it can’t be that
the lenders spend sleepless night after lending money to Indian businesses.
It will pay to be ethical – that is the kind of culture we are trying to
introduce and that is the kind of culture Indian businesses should encourage,
he said.
BSS/PTI/HR/1415